Local industry leaders talk 2016 challenges, 2017 outlook

By Tyler Marr

February 2, 2017 12:00 AM

(left to right) Darren King, with Kings Energy Group, Scott Musgrave with Musgrave Agencies and Jill Kelly with Red Bicycle Communications presented to members of the Rotary Club of Lloydminster on what they took away from 2016 and what they are projecting in their respective sectors for 2017 on Thursday, Feb. 2. Tyler Marr / Lloydminster Meridian Booster

The economic path through 2016 was rough and filled with plenty of speed bumps for many sectors of the economy in Lloydminster.

Monday, three local leaders in the retail, agriculture and diversified retail and commercial sectors spoke to members of the Rotary Club of Lloydminster on some major takeaways from the previous business year, and what 2017 looked like in their respective fields.

The three panelist — Don Stephenson, CEO of the Lloydminster and District Co-op, Todd Hames, former president of the Canadian Canola Growers Association and producer from Marwayne, and Kim Richer, general manager of the Lloyd Mall — told similar stories of taking a cautious yet optimistic approach to the new year.

“Lloydminster has been on an economic boom for so long, we have always done so well because of the oil industry, and now we are feeling the downside of that,” Richer said while speaking with media following the event.

The retail sector has taken a hit from the cool economic climate as consumer’s shopping habits have drastically changed locally according to Richer.

Though retail sales saw a slight increase of two per cent in 2016 from 2015, they still remained around five and six per cent lower than average.

“Consumers are purchasing less. They are really looking for deals (and) they are really looking for that sale,” she explained.

Despite this, retail sales in Alberta were still the third highest in Canada.

Adapting to the new market has been a challenge, but Richer explained how the biggest thing has been trying to provide exceptional customer service in an effort to build loyalty with the customers.

The Lloyd Mall was also working on some new initiatives in 2017 to fill the vacancy’s in the mall by trying to attract some new national retailers.

“We have some incentives, so we are really looking at that too.”

The large capital investments at the Lloyd Mall in 2014 and 2016 for renovations have actually played well for Richer, setting them up to be prepared when the market bounces back.

“We had a really good run at getting some strong names in the centre. The mall looks fresh and so now we are ready for when the economy comes back.”

This message was shared by Stephenson, who indicated the large investments prior to the slowdown — around $35 million in card lock, gas bar and grocery operations — were needed to “set the table” moving forward.

He likened the investment to a quote from Warren Buffet, which says “Someone is sitting in the shade today because someone planted a tree a long time ago.”

“I think for us, it is planting those trees for the future. Not just ourselves, it is for future generations to enjoy the success,” he said.

Stephenson held a marginal level of optimism for the upcoming year, saying the growth already being witnessed in the economy was feeding a positive trend going forward.

The agriculture sector and producers, on the other hand, had a unique up-and-down year which would “never be forgotten for many, many years,” according to Hames.

“Talking to fellow producers, it was the harvest from you know where, and is still going on for some people.”

Hames made an interesting note, explaining how despite the irregular weather patterns, it was still a rather good production year for area producers.

“Disappointing in some regards when we did not have a good harvest, but production wise, the crops are very good in the area and had very good seasonal weather until October,” Hames said.

The lower Canadian dollar also added some fuel to the optimism fire, as it gave the producers a 30 per cent increase in prices, which was proving to be a “life saver” according to Hames, until it came time to buy equipment south of the border.

Labour issues have also been seen rearing an ugly eye at the industry, as many people either have been struggling to find good work or are having people apply who have never been to or even seen a farming operation.

With the agriculture sector being tied heavily to the whim of commodity prices, work is always being done to remain competitive on a global stage.

This is why many farmers have been pushing back on government regulation and legislation like the carbon tax, because it affects their competitiveness abroad.

“Luckily, the world likes Canada’s products and the quality and consistency of our products.”

As for 2017, Hames said farmers were always a little “optimistic and pessimistic at the same time.”

“I thinks there is some optimism in the marketplace that we are going to see that stability there,” he said. “I do not see any reason the markets are going to fall apart.”

Overall, the panelists were “proud of their community” for sticking with them and felt only better things laid on the horizon.

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